OF SRI LANKA NATIONAL QUALITY INFRASTRUCTURE STRATEGY - Government of Sri Lanka - ITC
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Government of Sri Lanka NATIONAL QUALITY INFRASTRUCTURE STRATEGY OF SRI LANK A 2018-2022
The National Quality Infrastructure Strategy
is an official document of the Government of Sri Lanka
For any queries about the NQI, please contact :
Ministry of Development Strategies and International Trade
Address: Level 30, West Tower, World Trade Centre, Colombo 01.
Phone : +94 (0) 112337629
Phone : +94 (0)112337627
E-mail : info@modsit.gov.lk
This National Quality Infrastructure Strategy was developed on the basis of the National Quality
Policy, approved by the Cabinet in November 2016; the Sri Lanka National Quality Infrastructure
Gap Assessment completed by the World Bank; the technical assistance of the United Nations
Industrial Development Organization (UNIDO); and the process and methodology of the
International Trade Centre (ITC) for the formulation of Sri Lanka’s National Export Strategy.
Technical assistance for the design of this document was provided by Jairo Andres Villamil-Diaz
(UNIDO), Alexandra Golovko (ITC), Charles Roberge (ITC), Sumathy Rajasingham, (UNIDO),
Juan Pablo Diaz-Castillo (UNIDO), and Vinod K. Goel (World Bank). Technical inputs were
received from Daniel Böhme (Physikalisch-Technische Bundesanstalt (German national me-
trology institute).
ITC is a joint agency of the World Trade Organization and the United Nations that is fully dedi-
cated to supporting the internationalization of small and medium-sized enterprises.
UNIDO is the specialized agency of the United Nations that promotes industrial development
for poverty reduction, inclusive globalization and environmental sustainability.
Financial support was provided by the European Union, as part of the ‘European Union –
Sri Lanka Trade Related Assistance : Increasing SMEs’ trade competitiveness in regional and
European Union markets’ project. The contents of this document can in no way be taken to
reflect the views of the European Union.
The views expressed herein do not reflect the official opinion of ITC or UNIDO. Mention of
firms, products, and product brands does not imply the endorsement of ITC or UNIDO. This
document has not been formally edited by ITC or UNIDO.
Layout : Jesús Alés (www.sputnix.es)
The International Trade Centre ( ITC ) is the joint agency
of the World Trade Organization and the United Nations
Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, Switzerland
Postal address: ITC Palais des Nations 1211 Geneva 10, Switzerland
Telephone: +41-22 730 0111
Fax: +41-22 733 4439
E-mail: itcreg@intracen.org
Internet: http://www.intracen.org
United Nations Industrial Development Organization
Street address:
UNIDO Headquarters / Vienna International Centre
Postal address: Wagramerstr. 5, A-1400 Vienna, Austria. P.O. Box 300
Telephone: +43 (1) 26026-0
E-mail: unido@unido.org
Internet: http://www.unido.org
Government of Sri Lanka
NATIONAL QUALITY INFRASTRUCTURE
STRATEGY OF SRI LANKA
2018-2022
Photo: (cc) @pixabay
Photo: (cc) @pixabay
[ iii ]
MESSAGE FOR NQI STAKEHOLDERS
Sri Lanka has aspirations to become a middle-high A focussed intervention in these strategic issues will
income country by 2025 by having a highly competi- ensure that the NQI works smoothly to increase the
tive economy with a diversity of products and ser- quality, safety and environmental protection in Sri
vices for local requirements and export markets. An Lanka. As such, stakeholders of the Sri Lankan NQI
increase on export revenue will only take place by have agreed to the vision statement ‘A national qual-
consolidating Sri Lanka’s market hold in existing mar- ity infrastructure at the service of socio-economic
kets and by venturing into and establishing itself in development in Sri Lanka’. Adherence and support
newer markets through new, highly value added and to this vision and strategic approach will pave the way
diversified products and services. Sri Lanka’s ambi- for a well-established and dynamic NQI in Sri Lanka.
tions of becoming South Asia’s next regional Trade
Hub are therefore anchored to many national devel- The NQI has identified three strategic objectives.
opment programmes including the implementation These are, to implement the National Quality Policy
of The National Quality Infrastructure ( NQI ) strategy. together with the National Quality Council as the
monitoring body of the NQI, to promote recognition
For Sri Lankan goods and services to maintain their of Sri Lanka’s NQI system and to foster a culture of
current market hold amid increased regional compe- national quality consciousness while improving pro-
tition, it is vital that Sri Lankan products and services vision of NQI services to all Sri Lankans.
are considered to be synonymous with high quality
and safety and compliance with international regu- We, the stakeholders of NQI in Sri Lanka, look for-
lations and standards. A strengthened NQI has the ward to the implementation of this long-awaited strat-
potential to boost the standing of Sri Lankan goods egy, which Sri Lanka’s manufacturing and export
and services but also to provide an enabling environ- bases have long been in need of. We pledge there-
ment for SMEs in managing requirements of local and fore, to contribute and cooperate to the best of our
international markets, thereby boosting rural econo- ability to ensure that the NQI strategy is implement-
mies of Sri Lanka. ed such that Sri Lankan products and services can
reach their optimal potential.
In order for Sri Lanka to be recognised as a regional
Trade Hub by 2025, the NQI strategy has identified
three priority areas. These include focus on policy,
legal framework & regulatory issues and supply side
issues & demand side issues. Therefore, the strategy
outlines that NQI related policy & regulatory frame-
works need to be updated, capacity building needs
to be setup, and staff with expertise on NQI devel-
opment are trained and deployed to implement the
plan of action.
Mr. Dilhan Fernando – CEO, Mr. Sunanda Fernando – Director, Mr. L.H.D. Bandusoma Mr. S. Balasupramaniam
Dilmah Ceylon Tea Company PLC Sri Lanka Standards Institution – Deputy Director, – Additional Secretary,
Sri Lanka Accreditation Board Industrial Development
[ MESSAGE FOR NQI STAKEHOLDERS ]
[ iv ]
ACKNOWLEDGEMENTS
The National Quality Infrastructure Strategy was de- The document benefited particularly from inputs
veloped for Sri Lanka, under the aegis of the Ministry and guidance provided by members of the national
of Development Strategies and International Trade, quality infrastructure team and key stakeholders that
with financial support of the European Union (EU), as steered the formulation of the Strategy, namely :
part of the ‘Increasing SMEs’ Trade Competitiveness
in Regional and EU Markets’ project, in close coordi-
nation with national quality infrastructure stakeholders
and with inputs of other relevant parties.
Name Position Organization
Mr. M.S.S. Fernando Director Sri Lanka Standards Institution
Mr. L.H.D. Bandusoma Deputy Director Sri Lanka Accreditation Board
Mr. S.D.I. Dias Assistant Director Measurement Units, Standards
and Services Department
Dr. Sudarshana Somasiri Senior Deputy Director, Quality Assurance Industrial Technology Institute
Department
Ms. Nimalka Dias Controller Import Export Control Department
Mrs. I.K. Warshamana Deputy Director National Plant Quarantine Service
Dr. U.S.Gunarathna Animal Quarantine Officer Department of Animal Production
and Health
Mr. S. Mahesan Director ( Exports ) Sri Lanka Customs
Ms. Chandrika Thilakarathne Director – Consumer Affairs and Consumer Affairs Authority
Information
Mr. Dilhan C. Fernando Chief Executive Officer MJF Holdings Ltd, Dilmah Tea
Ms. Ruvini Ranasinghe Agriculture, Food and Life SGS Lanka ( Pvt ) Ltd
Manager – Business Development
Mr. E.W.A.S. Erathna Exports and Compliance Officer Maliban Biscuit Manufactories ( Pvt ) Ltd
Mr. M.Z.M. Farhad National Sector Specialist UNIDO
The full list of public and private stakeholders that
contributed their precious time to the design of this
Strategy are detailed in Appendix 1.
[ NATIONAL QUALITY INFRASTRUCTURE STRATEGY OF SRI LANKA ]
[v]
CONTENTS
Message for NQI stakeholders iii
Acknowledgementsv
Acronyms ix
EXECUTIVE SUMMARY 1
INTRODUCTION5
A WELL-DEVELOPED YET UNFINISHED NQI FOR SRI LANKA 7
NQI DIAGNOSTIC 17
THE WAY FORWARD : MAKING SRI LANKA’S NQI SUPPORTIVE OF ECONOMIC GROWTH 23
THE VISION 23
THE STRATEGIC OBJECTIVES 24
MOVING TO ACTION 25
THE STRATEGIC ACTION FRAMEWORK 25
IMPLEMENTATION FRAMEWORK 27
BENEFITS TO THE SRI LANKAN ECONOMY AND CONSUMERS 30
PLAN OF ACTION 2018–2022 35
REFERENCES43
Appendix 1 : List of participants in the public–private consultations and bilateral meetings 45
Appendix 2 : List of conformity assessment bodies accredited by SLAB 47
Appendix 3 : List of Sri Lanka’s TBT measures notified to WTO 52
Appendix 4 : List of Sri Lanka’s SPS measures notified to WTO 55
[ CONTENTS ]
[ vi ]
LIST OF FIGURES
Figure 1 : Structure of the NQI 8
Figure 2 : Strategic and operational framework 25
Figure 3 : Institutional framework for implementing the NQI Strategy 27
LIST OF TABLES
Table 1 : Projected contribution to GDP of a national quality infrastructure, 2018–2022 3
Table 2 : Estimated return on investment of implementing a national quality infrastructure, 2018–2022 3
Table 3 : Area of responsibility and responsible organization for market surveillance 10
Table 4 : Assessment of NQI institutions 14
Table 5 : Estimated increment of GDP growth due to NQI Strategy implementation, 2018–2022 30
Table 6 : Estimated budget ( investment ) to implement the NQI Strategy 31
Table 7 : Return on investment of implementation of the NQI Strategy, 2018–2022 32
LIST OF BOXES
Box 1 : Metrology in the SAARC region 12
Box 2 : National quality council as the apex body of the NQI 19
Box 3 : Key performance indicators for the strategic objectives to be followed by the NQC 28
Box 4 : World Bank estimated return on investment of NQI contribution to GDP 30
[ NATIONAL QUALITY INFRASTRUCTURE STRATEGY OF SRI LANKA ]
[ vii ]
ACRONYMS
The following abbreviations are used :
APHA American Public Health Association MoA Ministry of Agriculture
APLAC Asia Pacific Laboratory Accreditation MoDSIT Ministry of Development Strategies
Cooperation and International Trade
APMP Asia Pacific Metrology Programme MoFARD Ministry of Fisheries and Aquatic
BIPM International Bureau for Weights Resources Development
and Measures MoHNIM Ministry of Health, Nutrition and Indigenous
BS British Standard Medicine
CAA Consumer Affairs Authority MoPI Ministry of Primary Industries
CAB Conformity Assessment Body MoSTR Ministry of Science, Technology
CCC Ceylon Chamber of Commerce and Research
CDA Coconut Development Authority MRA Mutual Recognition Agreement
CIPM International Committee for Weights MS Management System
and Measures MUSSD Measurement Units, Standards
CMC Calibration and Measurement Capability and Services Department
CSR Corporate Social Responsibility NCE National Chamber of Exporters
DoA Department of Agriculture NES National Export Strategy
DAPH Department of Animal Production NFA National Food Authority
and Health NMI National Metrology Institute
DoC Department of Commerce NPQS National Plant Quarantine Service
EDB Sri Lanka Export Development Board NQC National Quality Council
EN European Norm NQI National Quality Infrastructure
EU European Union NQP National Quality Policy
GAP GoodAgricultural Practices PoA Plan of Action
GDP Gross Domestic Product RIA Regulatory Impact Analysis
GMP Good Manufacturing Practice SAARC South Asian Association for Regional
GoSL Government of Sri Lanka Cooperation
HS Harmonized System SLAB Sri Lanka Accreditation Board
IAF International Accreditation Forum SLATL Sri Lanka Association of Testing
IEC International Electrotechnical Commission Laboratories
IECD Import Export Control Department SLS Sri Lankan Standard
ILAC International Laboratory Accreditation SLSI Sri Lanka Standards Institution
Cooperation SME Small and Medium-sized enterprise
IoT Internet of Things SPS Sanitary and phytosanitary
ISO International Organization TBT Technical Barriers to Trade
for Standardization UNIDO United Nations Industrial Development
ITC International Trade Centre Organization
ITI Industrial Technology Institute WB World Bank
KCDB Key Comparison Database ( BIPM ) WTO World Trade Organization
MIC Ministry of Industry and Commerce
[ ACRONYMS ]
Photo : (cc) pxhere.com
1
EXECUTIVE SUMMARY
The goal of Sri Lanka’s National Quality Infrastructure ( NQI ) Quality as a national priority has been addressed through
Strategy is to set quality-related functions on a course to the development of a comprehensive policy framework ( the
provide high-performance services that allow small and me- NQP), demonstrating Government commitment to establish-
dium-sized enterprises ( SMEs ), larger companies and ex- ing a modern NQI and accompanying governance struc-
porters to comply with market requirements. It equally aims ture. Although all the functions required in a contemporary
to build capacities, support the enforcement of Sri Lankan NQI are present and the policy framework is in place, some
regulations, assist environmental sustainability and ensure specific weaknesses continue to impede the performance
consumers are protected through access to quality and safe of the NQI. There are also gaps in overall coordination. In or-
goods. der for Sri Lanka to be a recognized as a trade hub by 2025,
there are key NQI priorities that need to be addressed, out-
The NQI Strategy originates from the need to implement the lined below.
National Quality Policy ( NQP ) of Sri Lanka. All key NQI insti-
tutions, the private sector, relevant Government institutions Policy, legal framework and regulatory issues : The leg-
and civil society ( representatives from universities and tech- islation supporting the NQI is outdated and incomplete.
nical and vocational education and training institutions ) were Coordination mechanisms for institutions and regulatory
involved in the consultative and inclusive design process to bodies must be set in place. A centralized system to keep
ensure the final document reflects their diverse ambitions and track of technical regulators or technical regulations is also
is fully implementable for the benefit of Sri Lanka. needed; as well as a comprehensive legal framework for
central coordination, planning, oversight and monitoring of
This Strategy builds upon the findings of an NQI gap the NQI, including implementation of regulatory impact anal-
assessment,1 corresponds to a broader vision for the long- ysis ( RIA ) to ensure regulatory efficiency.
term improvement of the quality function, and defines a pre-
cise five-year implementation road map ( action plan ) This Supply-side issues : There are not enough technical staff
NQI Strategy was designed in conjunction with the National with recognized competence operating in NQI institutions.
Export Strategy ( NES ) of Sri Lanka. An increase in staff is required in most institutions, espe-
cially in the Measurement Units, Standards and Services
Sri Lanka’s NQI has been developing progressively for many Department (MUSSD). Long-term budgetary planning for the
years and has established the main functions required to NQI is weak and not coordinated between institutions. In ad-
operate and be internationally recognized through multilat- dition, conformity assessment services must be extensively
eral agreements. Sri Lanka has all the necessary institutions developed, accreditation broadened and conformity assess-
that form the basis of an NQI : the national metrology insti- ment services made visible, especially to the private sector.
tute ( NMI ) of Sri Lanka handles industrial, legal and scien-
tific metrology; the Sri Lanka Standards Institution ( SLSI ), Demand-side issues : There is limited understanding and
which formulates standards for Sri Lankan products in line visibility of conformity assessment processes in Sri Lanka,
with international standards; and the Sri Lanka Accreditation as well as their accreditation status. Standards committees
Board ( SLAB ), which is the national accreditation body of do not cover all key sectors, nor do they address all of the
Sri Lanka. These core institutions, in close coordination with standardization needs. International buyers are increasing-
conformity assessment bodies ( CABs ), have been protect- ly requesting private certification schemes but Sri Lankan
ing Sri Lankan consumers and ensuring compliance of SMEs have limited access to such schemes, which are also
Sri Lankan exports. expensive. Sri Lanka could establish a comprehensive and
open standard and certification scheme incorporating eth-
ics and environment sustainability which would be accept-
able to buyers.
1.– WB (2017). Sri Lanka NQI Gap Assessment.
[ Executive summary ]2
“
There is a general lack of awareness about NQI-related is-
A national quality infrastructure
sues within institutions, the private sector and consumers.
at the service of socioeconomic
”
A centralized information repository of NQI services is re-
quired for SMEs to access a one-stop shop for all quality- development in Sri Lanka
related services.
The institutional, regulatory and service provision set-up of
the NQI, including how it is coordinated, needs to be opti- Looking into the future :
mized. The following represent the main focus areas of the
NQI Strategy : In 2020, Sri Lanka will have all NQI services accessible
to priority sectors, with international recognition.
Reinforce overall institutional coordination in the NQI;
Revise the legal framework and initiate the development In 2023, Sri Lanka’s NQI will be operating with a higher
of RIA and an umbrella legal framework for the NQI; level of inter-agency coordination, led by a national qual-
Strengthen managerial and technical capacities of NQI ity council ( NQC ); more active institutional participation
core institutions in line with international best practice; in international and regional forums; regulations follow-
Strengthen and broaden conformity assessment services ing RIA; and conformity assessment services used by
in Sri Lanka with international recognition; the public and private sectors and academia, including
Broaden and coordinate the metrology function; research, development and innovation.
Promote the participation of national technical institutions
( SLSI, SLAB, MUSSD ) in international technical forums; In the years following the implementation of this Strategy,
Develop national standards in line with newly developing Sri Lanka will be the leader of quality in the South Asian
economic sectors; Association for Regional Cooperation (SAARC); NQI will
Streamline food safety control in Sri Lanka; have a strong planning, coordinating, and monitoring
Build awareness and understanding about quality in the NQC leading a quality promotion agency; NQI institu-
private sector and the general public. tions will participate and play key roles in international
forums; and all conformity assessment schemes / ser-
The strengthening of these strategic points will ensure that vices will be internationally recognized and widely used
the NQI works efficiently to raise the bar of quality, safety and by SAARC countries and other Asian countries.
environmental protection in Sri Lanka. The following vision
and strategic approach will guide the way for a well-estab- The vision will be achieved by addressing the key constraints
lished and effectively functioning NQI. This vision statement of the NQI in a comprehensive manner, and through im-
and strategic arrangement were agreed by key NQI stake- plementing the robust and realistic strategic plan of action
holders of Sri Lanka. ( PoA ) defined and agreed by NQI stakeholders. In order to
plan, work and act towards the coherent vision, is it neces-
sary to reach the following three strategic objectives and 11
operational objectives.
1: Implement the NQP and strengthen 2: Achieve wider international recognition 3: Improve provision of NQI services
the institutional framework of the NQI of Sri Lanka’s NQI system to all Sri Lankans and foster
a national quality culture
• Reinforce institutional coordination • Strengthen conformity assessment • Assemble existing food safety
in the NQI by creating the NQC, an service provision units into a dedicated NFA
interactive information platform and • Strengthen MUSSD to have their CMCs • Establish standardization
a quality unit (or agency) to internationally recognized committees and standardization
promote and facilitate quality-rela- • Strengthen NQI institutions and support units for key sectors
ted services participation in international forums • Increase the knowledge, skills and
• Revise the legal framework • Expand SLAB accreditation services and qualifications in technical and
supporting the NQI and enable RIA increase international recognition quality aspects for the industry,
• Strengthen managerial and • Review national technical regulations to non-NQI institutions and the
planning capacities in NQI cover exclusively: environmental and general public
institutions health and safety requirements,
consumer protection, and justice
[ NATIONAL QUALITY INFRASTRUCTURE STRATEGY OF SRI LANKA ]3
Benefits to the Sri Lankan economy and consumers
Investment
The implementation of the NQI Strategy is expected to require public and private investment
2018–2022
of approximately LKR 3.1 billion over the next five years. Strategic objectives :
( USD thousand )
1 : Implement the NQP and strengthen the institutional framework of the NQI 3,915
2 : Achieve wider international recognition of Sri Lanka’s NQI system 8,625
3 : Improve provision of NQI services to all Sri Lankans and foster a national quality culture 3,200
Total ( USD thousand ) 15,570
According to World Bank ( WB ) estimates, the potential im- The investment required to implement the NQI Strategy is
pact of an improved NQI function on gross domestic prod- estimated as USD 15,5 million. Assuming a revenue rate of
uct ( GDP ) can be estimated at an additional 1 % – 3 % for the 3 % ( tax collection ) over the increment of GDP, the analysis
following five years. Considering a GDP of USD 81.322 bil- of the return on investment from a National Budget perspec-
lion and a moderate increment of 0.2 % per year, the pro- tive is shown in table 2.
jected contribution of the NQI Strategy to Sri Lankan GDP
is shown in table 1.
Table 1 : Projected contribution to GDP of a national quality infrastructure, 2018–2022, USD million
2018 2019 2020 2021 2022
Increment of GDP ( 0.2 % per year ) 162.64 325.61 488.91 652.53 816.48
Source : UNIDO calculations based on WB estimates.
Table 2 : Estimated return on investment of implementing a national quality infrastructure, 2018–2022, USD million
2018 2019 2020 2021 2022
NQI Strategy investment Additional tax revenue ( 3 % of the GDP increment as fiscal income )
15,5 4.88 9.77 14.67 19.58 24.49
Internal rate of return 62,84%
Source : UNIDO calculations based on WB estimates.
Beyond the financial returns to the Sri Lankan economy, the Cutting-edge testing facilities to test for entrepreneurs
NQI strategy will: and innovators to improve their new products and bring
to market.
Improved protection for domestic consumers, through Effective coordination between institutions and services
safer products, a clean environment and more reliable to help exporters to reach their destination.
health services.
Advanced capacities for the state to assess risks and Overall, investment in quality and compliance services will
enforce regulations, as well as have more reliable infor- benefit all Sri Lankans.
mation and assessment of services.
Level playing field for businesses to provide services re-
lated to quality.
Healthier competition in the provision of quality services
through more private CABs, will help to reduce the costs
of compliance for SMEs and exporters.
[ Executive summary ]Photo : (cc) pxhere.com
5
INTRODUCTION
If the prosperous future that Sri Lanka desires – with good Effective systems should be set up to control the quality and
governance; rule of law; and inclusive, sustainable eco- safety of imported and national products. This implies estab-
nomic development based on international trade – is to lishing an effective technical regulatory regime with the nec-
be achieved, better quality-related services are essential. essary conformity assessment3 capabilities in line with the
Improved business opportunities, better standards of living accepted rules of international trade. To prove compliance
and improved quality of life require a strong capacity to iden- with quality standards and technical regulations, it is essen-
tify, establish and effectively assess the characteristics of tial to have a competent and internationally recognized NQI.
products, processes, systems and services. In order to build
that capacity, this Strategy streamlines the implementation This NQI Strategy was designed through a consultative pro-
of the NQP, responds to the emerging compliance needs of cess between public and private stakeholders and technical
Sri Lankan enterprises, and establishes a clear way forward meetings with key institutions, and in conjunction with the
for all institutions and partners of the NQI. NES of Sri Lanka, to effectively support the sustainable eco-
nomic growth of the country. It constitutes the plan to build
The Government’s economic vision2 necessitates transform- the capacity of the NQI, promote the use of quality practices
ing Sri Lanka into an open trade hub in the Indian Ocean. In and implement the NQP. This Strategy will guide the devel-
the current global context, characterized by increasing in- opment and strengthening of quality-related services and
terdependence among national economies and the formal- better use of quality tools in order to increase productivity,
ization of international trade ( e.g. agreements of the World comply with technical requirements, execute production in
Trade Organization ( WTO ) ), all economies are subject to in- a sustainable way and demonstrate responsibility to society.
creasingly strong challenges, resulting in a growing demand
for quality, while policies to protect both the environment and The Strategy has the following structure :
consumers have become ever more stringent.
Section 1 describes the current NQI situation in Sri Lanka
For Sri Lanka, this means that increasing the supply ca- Section 2 is a diagnostic highlighting issues and oppor-
pacity of quality evaluation services is essential to create tunities to improve the NQI
high-growth / high-value opportunities, gain entry into world Section 3 shows the way to move forward by establishing
markets, and achieve regional harmonization and integra- the strategic framework for the NQI
tion. In addition to the effective production of goods, it is Section 4 establishes the action framework to carry out
essential to ensure the high level of quality requested by the Strategy, including the PoA
international and regional markets, including proving con- Section 5 indicates the public and institutional anchoring
formity to international standards and technical regulations. and how to implement the NQC, together with key factors
In addition, producers are increasingly expected to demon- for successful implementation
strate that they apply sustainable and ethical practices to Section 6 is an analysis of benefits and expected results,
protect the environment and people. plus key factors for successful implementation
References and appendices complete the document.
2.– Sri Lanka ( 2015 ). Vision 2025. Available from http ://www.treasury.gov.lk/ 3.– Conformity assessment means evaluating and confirming features
documents/10181/66400/Vision_2025_English.pdf/8d93e8db-2c3a-4e15- such as quality, reliability, safety, economy, efficiency and effectiveness
9ab2-fc619817e6fd. as defined in standards and regulations.
[ Introduction ]Photo : (cc) pxhere.com
7
A WELL-DEVELOPED YET
UNFINISHED NQI FOR SRI LANKA
The NQI in Sri Lanka has been developed over the past 70
years and today possesses the basic functions required
to operate and be internationally recognized through mul-
tilateral agreements.4 It is in line with the requirements of
international trade determined by WTO as well as regional
trade agreements. Accreditation activities are already rec-
ognized internationally and a legal infrastructure is in place.
However, the capacity and scope of conformity assessment
can still grow vastly.
In 1998 the first Sri Lankan NQP was launched. Following
the introduction of this first NQP, the national NQI was de-
veloped to a great extent. In 2014, the country’s economic
evolution required that the NQP be revised to align with the
needs of emerging sectors of the economy. The functions
of the NQI were improved and reviewed. With the technical
assistance of the German international development agency
GIZ, the second, improved NQP was developed in 2015 / 16
and approved in November 2016.
The NQP provides for setting up a high-level governance
structure, the NQC, to implement the NQP and coordinate
all issues related to quality. However, this NQC and a related
secretariat have not yet been operationalized. The NQC is Photo: (cc) @pixabay
foreseen to be the apex policymaking body, with high cali-
bre membership5 and capable of undertaking general plan-
ning, including :
Standardization, metrology, conformity assessment and ac-
Investments creditation are the main functions of NQI institutions. The
Coordination among NQI institutions services provided by these institutions are used by authori-
Monitoring / oversight ties and regulatory agencies to enforce and assure compli-
Fostering RIA ance and for market surveillance. The private sector relies
Inventorying technical regulations on the NQI to assess and certify technical characteristics
Ensuring international recognition of products, processes, services and systems. At the end,
Supporting the quality movement consumers and the general public receive great benefits
Promoting education and training in quality topics. from NQI services by getting more and better information,
and safer products, while the environment is protected.
Figure 1 describes the structure of Sri Lanka’s NQI and its
4.– The following section of the NQI Strategy is adapted from : WB ( 2017 ).
Sri Lanka NQI Gap Assessment, pp. 23–33; data from the National Quality key functions.
Policy and data collected through public–private consultations facilitated
by ITC and UNIDO.
5.– According to the NQP, the members of the NQC will be appointed by
His Excellency the President.
[ A well-developed yet unfinished NQI for Sri Lanka ]8
Figure 1 : Structure of the NQI
National Quality Policy
NQC and secretariat*
CABs - inspection,
SLSI MUSSD testing and SLAB
certification
Public users: Regulatory agencies, authorities.
Private users: Importers, exporters, producers.
General public - consumers
*Expected to be operationalized.
LEGAL FRAMEWORK
The legal framework of the NQI is based on Acts passed However, although Sri Lanka has had this legal structure for
by the Parliament of Sri Lanka. These Acts govern the es- many years, the various Acts were created at different times
tablishment and functioning of core institutions and related for different purposes and sometimes not considering the
authorities. The three core institutions that form the basis of whole picture. Therefore, an assessment of the existing legal
the NQI are : MUSSD, which is the NMI of Sri Lanka heading infrastructure and further recommendations for restructuring
industrial, legal and chemical metrology; SLSI, which formu- are required to create an umbrella legal framework to govern
lates the standards that are adopted by the authorities, to all NQI institutions and related authorities. Further, some are-
be mandatory when a need arises; and SLAB, which is the as of NQI that need to be addressed in order to comply with
national accreditation body of Sri Lanka.6 CAA and CEA are international best practices are lacking : e.g. the legal ele-
regulatory authorities watching for consumers and the envi- ments governing CABs are not addressed in any of the Acts.
ronment. They are governed by the following Acts.
Restructuring will also help address the conflicts among the
MUSSD Act No. 35 of 1995 Acts governing the NQI institutions so that the national NQI
SLSI Act No. 6 of 1984 supports both local production and international trade effi-
ciently and effectively.
SLAB Act No. 32 of 2005
Consumer Affairs Authority ( CAA ) Act No. 9 of 2003
The following Acts and Directions are the basis for NQI reg-
Central Environmental Authority Act No. 47 of 1980 ulation in Sri Lanka.
Imports and Exports Control Act No.1 of 1969
Consumer Protection Act No 1 of 1979
Imports and Exports Control Act Amendment December 1985
National Environment Act Act No.56 of 1988 and Act
( Amendments ) No.53 of 2000
6.– Department of Government Printing, Sri Lanka.
[ NATIONAL QUALITY INFRASTRUCTURE STRATEGY OF SRI LANKA ]9
Photo : (cc) pxhere.com
Other important legal provisions related to NQI are : regulations and specifications determined by CAA published
in the Gazette, based on the standards and specifications
Directions issued under the Consumer Act No. 1 of 1979 drafted by SLS Standards. CAA also has other functions,
Protection for Sri Lankan Standard ( SLS )
such as educating the public and running public awareness
Marking
campaigns, undertaking studies on the sale or supply of any
Directions issued under CAA Act No. 9 of 2003
for SLS Marking
goods and services, etc.
Gazette notification No. 1844 / 9 of 08
January 2014 under the Imports and
SLSI, through the SLS marking system, also has a market
Exports Control Act No.1 of 1969 for the surveillance role: where a certification mark is declared to be
imports control of SLS marking compulsory for any commodity or product for its manufac-
Gazette Extraordinary Notification ture, production, processing or treatment, it has to comply
No.1953 / 27 of 11 February 2016, to cover to the relevant standard specifications. The SLS Mark has
taps and accessories under the Import two main problems : it is used for both voluntary and man-
Inspection Scheme
datory purposes ( indistinct for the final consumer ), and it is
used by authorities to enforce compliance with regulations.
Regulators should use product certification bodies accred-
REGULATION, CONSUMER PROTECTION ited by SLAB or other internationally recognized accredita-
AND MARKET SURVEILLANCE tion bodies.7
There is no central body that coordinates or monitors market Regarding technical regulations and market surveillance in
surveillance. Most technical regulation functions comprise Sri Lanka, responsibility is shared across varied institutions
part of the work of market surveillance bodies. One impor- for more than 30 focus areas. While certain areas are not
tant example is CAA. This organization prepares technical covered, it appears that definition of technical regulations
regulations in the area of ‘consumer affairs’ ( a very broad in Sri Lanka uses a complicated and partially fragmented
area that overlaps with many sectors ) and is the main mar- framework.
ket surveillance body for the protection of the Sri Lankan
domestic market. CAA investigates complaints about the
7.– SLSI is not accredited, to date, for product certification. A complete list
manufacture or sale of articles which do not conform to the of accredited CABs can be found in appendix 3.
[ A well-developed yet unfinished NQI for Sri Lanka ]10
Table 3 : Area of responsibility and responsible organization for market surveillance
Area of responsibility Responsible organization
Food items Ministry of Health, Nutrition and Indigenous Medicine ( MoHNIM )
Cosmetics, drugs and devices MoHNIM
Spices MoHNIM
Meat products Ministry of Agriculture ( MoA )
Agricultural products Department of Agriculture ( DoA )
Pesticides MoA
Fisheries Department of Fisheries and Aquatic Resources
Consumer affairs CAA
Desiccated coconut Coconut Development Authority ( CDA )
Tea Sri Lanka Tea Board, Tea Commissioner’s Department
Analysts Government Analyst’s Department, Industrial Technology Institute ( ITI )
Atomic energy Atomic Energy Authority
Ayurveda and homeopathic drugs Department of Ayurveda, Ayurveda Research Institute
Analysis of medical products Medical Research Institute, National Drugs Quality Control Laboratory
Measurements units and legal metrology MUSSD, Department of Internal Trade
Environment, wildlife and forestry Central Environmental Authority
Emissions from motor vehicles Central Environmental Authority, Department of Motor Traffic
Gems and jewellery National Gem and Jewellery Authority
Pharmaceuticals State Pharmaceuticals Corporation
Electrical Testing National Engineering Research and Development Centre, Arthur C. Clarke Centre
Housing and construction Department of Building, Institute of Construction Training and Development, National
Building Research Organization, Condominium Management Authority, Urban Development
Authority, Colombo Municipal Council
Public health and safety Office of Chief Medical Officer
Registration of factories Department of Labour
Telecommunications Telecommunications Regulatory Authority
Imported items CAA, SLSI, Import Export Control Department ( IECD )
Fuel transportation Ceylon Petroleum Corporation
Compulsory products Department of Internal Trade, SLSI
Energy Conservation Ceylon Electricity Board
Marine engineering and shipping Sri Lanka Ports Authority, Marine Pollution Prevention
Road development Ministry of Higher Education and Highways
Source : WB ( 2017 ). Sri Lanka NQI Gap Assessment, p. 22.
SLSI exchanges, on a reciprocal basis, copies of its national
STANDARDIZATION standards, and is responsible for disseminating information
on standards, technical regulations and standards-relat-
The standardization function is taken up by SLSI, the na- ed activities to the community at national level. SLSI also
tional standards body of Sri Lanka established in 1964. represents Sri Lanka in the International Electrotechnical
Commission ( IEC ).
SLSI now functions under the Ministr y of Science,
Technology and Research ( MoSTR ) and is governed by Currently about 2,000 national standards are used in
a Council appointed by the Minister. SLSI is a member of Sri Lanka, and about 1,400 of them relate to products, com-
and official Sri Lanka representative to the International modities, materials, processes and practices. While no re-
Organization for Standardization ( ISO ). As member of ISO, search data are available on the ideal number of standards
[ NATIONAL QUALITY INFRASTRUCTURE STRATEGY OF SRI LANKA ]11
required to serve the needs of an economy, large, sophisti- As the leading institution mandated for quality in Sri Lanka,
cated economies normally have around 10,000 to 20,000 na- SLSI has many functions. In addition to its fundamental
tional standards and smaller economies have around 5,000. role in the preparation of standards, SLSI provides train-
In cases where suitable national standards are not available, ing to the industry, performs laboratory services in terms of
industry often makes use of suitable international standards calibrations and product tests, runs the product certification
or foreign national standards ( usually from trading partners system (SLS Mark), organizes the Sri Lanka National Quality
such as India ). The standards information function at SLSI Awards, performs import inspections, is the WTO enquiry
has access to several international standards databases and point and performs certification.
can provide these to the public. Standards are prepared
through sectoral committees. Sri Lankan Standards are pre-
pared in 14 categories : METROLOGY
1. Food The metrology function in Sri Lanka is led by MUSSD. As
2. Agriculture in any other country, metrology is one of the main compo-
3. Chemicals nents in any kind of NQI and has three areas : development
4. Cosmetics of measurement standards and techniques ( or scientif-
5. Paper and board ic metrology ), calibrations ( industrial metrology ) and veri-
6. Packaging fications on behalf of national interests ( legal metrology ).
7. Societal needs MUSSD plays the role of NMI in Sri Lanka and is responsible
8. Textiles and garments for scientific, industrial and legal metrology activities in the
9. Leather and footwear country. MUSSD was established in 1997 according to the
10. Codes of practice Measurement Units, Standards and Services Act No : 35 of
11. Test methods 1995. It replaced the former Weights and Measures Bureau,
12. Terms and glossaries which functioned as a small division of the Price Control
13. Management system standards Department. This division mostly concentrated on legal met-
14. Other rological activities rather than scientific or industrial aspects.
The National Measurement Laboratory was also estab-
National standards are developed and approved in ac- lished under the MUSSD Act, and is the core institute of
cordance with annex 3 to the WTO Technical Barriers to MUSSD and the NMI in Sri Lanka but with a different name.
Trade ( TBT ) agreement, Code of Good Practice for the Establishment, maintenance and dissemination of national
Development of Standards. The procedure is captured in measurement standards in Sri Lanka are performed by the
the national standard SLS 0 – published on the SLSI web- National Measurement Laboratory.
site and publicly available at no charge. A quality system is
in place to provide assurance that procedures are followed, Apart from Government institutes such as ITI, SLSI, the
and to this end the standards development function is certi- Sri Lanka Atomic Energy Board which have calibration lab-
fied to ISO 9001 by the Bureau of Indian Standards. The WB oratories, few other bodies provide calibration facilities.
NQI Gap Analysis (2017) pointed to frustrations by members Additionally, four private sector calibration laboratories also
of the public with the time taken for to develop certain stand- operate in Sri Lanka.
ards that are needed.
While basic calibrations can be provided to industry by
The standards development function is committed to align- MUSSD and these other calibration laboratories, the calibra-
ing national standards with international standards, and SLSI tion functions of MUSSD require recognition and traceability
is thus a member of both ISO and IEC. Sri Lanka participates to international measurement standards through the inclu-
in 197 out of 688 technical committees at the international sion of their CMCs in the Key Comparison Database (KCDB)
level ( 71 committees as a full participation member and 126 of the International Bureau of Weights and Measurements
as an observer ) and three ISO policy development commit- ( BIPM8 ). As the economy grows in size and complexity, ad-
tees. SLSI also facilitates the membership of the Sri Lanka ditional measurement traceability and higher accuracy of
national committee at the IEC, where it participates in four existing measurements will be required; significant invest-
technical committees. In general, the participation of SLSI in ment will be needed.
international committees is very limited, and hence the cor-
respondence of mirror technical committees in Sri Lanka is
inadequate.
8.– BIPM follows the name in French : Bureau International des Poids et
Mesures.
[ A well-developed yet unfinished NQI for Sri Lanka ]12
Sri Lanka is an Associate ( not yet a member state ) of the 2015 to 16 August 2016 ). For MUSSD to obtain internation-
General Conference on Weights and Measures and has been al recognition, it is still necessary to sign the CIPM MRA.
participating in the International Committee for Weights and In order for that to happen, the quality system of MUSSD
Measures ( CIPM )9 Mutual Recognition Agreement ( MRA ) has to be assessed and approved by Asia Pacific Metrology
since 14 November 2007 ( excepting the period 1 January Programme (APMP) Technical Committee for Quality System
and must have approved participations in key comparisons
9.– CIPM follows the name in French : Comité International des Poids et
organized by BIPM. After that, MUSSD CMCs could be in-
Mesures. cluded in the KCDB.
Box 1 : Metrology in the SAARC region
In the SAARC region, no country other than India has published In South-East Asia, other members of APMP have included some
CMCs in the KCDB. In the extended Asia Pacific region, there is the of their CMCs in the KCDB ( e.g. Indonesia, Malaysia, Singapore,
regional metrology forum, APMP, which is a grouping of NMIs from Thailand, the Philippines and Viet Nam ). Others members of APMP
which MUSSD can obtain technical knowledge. are in a more advanced situation than Sri Lanka, with many CMCs
included – providing a high level of calibration in several physi-
cal magnitudes as well as ionizing radiation – and are producing
a large number of certified reference materials ( e.g. Republic of
Korea, Japan, China ).
ACCREDITATION
The accreditation function is performed by SLAB, the Accreditation of inspection bodies : Organizations re-
Sri Lankan national accreditation authority. SLAB func- quired to conduct various types of inspections for regula-
tions under the purview of MoSTR and is governed by a tory purposes are accredited under this scheme.
Council with 13 members. The Director is the Chief Executive Accreditation of certification bodies : Competence re-
of the Accreditation Board. SLAB is responsible for promot- quirements for auditing and certification of environmen-
ing accreditation activities and providing the necessary ac- tal management systems; competence requirements for
creditation services to facilitate conformity assessments in auditing and certification of quality management systems
the provision of goods and services for domestic and export and food safety management systems; requirements for
markets. In delivering accreditation services, SLAB works bodies providing audit and certification of food safety
closely with governmental organizations and professional management systems; accreditation of product certifi-
bodies whose members represent different committees and cation bodies.
could thus compromise the confidentiality and impartiality Accreditation of greenhouse gas validation and verifi-
of accreditation. However, suitable steps are always taken cation bodies.
to minimize or eliminate any conflicts of interest regarding
accreditation.
SLAB has no accreditation services for proficiency test pro-
Accreditation in Sri Lanka is performed in five groups, in line viders, nor for certified reference materials producers.
with international practices :
SLAB is a full member and is a signatory to the MRA of
Accreditation of testing /calibration laboratories : chemi- Asia Pacific Laboratory Accreditation Cooperation ( APLAC )
cal testing, biological testing, physical and mechanical and International Laboratory Accreditation Cooperation
testing, and calibration laboratories. ( ILAC ). It has also gained full membership status with
Accreditation of medical / clinical laboratories : clinical Pacific Accreditation Cooperation and the International
pathology, clinical biochemistry, haematology, microbiol- Accreditation Forum ( IAF ).
ogy and serology, histopathology, immunology, molecu-
lar biology, pharmacology and nuclear medicine.
[ NATIONAL QUALITY INFRASTRUCTURE STRATEGY OF SRI LANKA ]13
The scope of the SLAB IAF Multilateral Recognition Agree-
ment is :
Management system (MS) certification – ISO/IEC 17021-1
Sub-scopes :
Level 4 MS : ISO / TS 22003
Level 5 MS : ISO 9001
MS : ISO 14001
MS : ISO 22000
Product certification – ISO / IEC 17065
The scope of the SLAB ILAC MRA is :
Calibration : ISO / IEC 17025
Testing : ISO / IEC 17025
Medical testing : ISO 15189
Inspection : ISO / IEC 17020
There is still a lot of room for improvement for SLAB, both in
Photo : (cc) pxhere.com
new services and in a greater number of accredited CABs.
to the contrary, regulatory bodies tend to feel that they do
CONFORMITY ASSESSMENT not need to demonstrate their competence to an independ-
ent third party because their mandate to inspect is already
Certification and testing are carried out by many CABs in provided in their enabling legislation. Post-market surveil-
the areas of products, processes, services, MSs and per- lance of compliance with technical requirements is weak,
sonnel. These organizations belong to public or private insti- with regulatory bodies concentrating largely on pre-market
tutions. Most of the product certification is done through the approval of products.
SLS Mark system and handled by SLSI. This product certifi-
cation scheme, which is popularly known as the ‘SLS Marks
Scheme’, is a scheme that gives a third party guarantee on
quality of a product. It enables SLSI to grant permits to lo-
The NQI in Sri Lanka has been developing progressively for
cal and overseas manufacturers that produce goods con-
many years and it has established all of its key functions.
forming to Sri Lankan Standards to carry the ‘SLS’ mark on
However, not all functions operate at the same level of effective-
their products. The SLSI Act No.6 of 1984, and the regula-
ness. The overall NQI coordination and governance indicated
tions made therein, empower SLSI to issue such permits to
by the NQP is also not yet operationalized.
manufacturers. Nonetheless, SLSI is not yet accredited by
SLAB to provide product certification ( ISO / IEC 17065 ). Only
one CAB is accredited for product certification by SLAB.
Organic food certification is provided in 98 % of cases by a
foreign multinational company, accredited not by SLAB but
by a foreign accreditation body. INSTITUTIONAL ASSESSMENT OF THE NQI
FUNCTION
Similar to product certification, personnel certification is
very weak in Sri Lanka. Currently there is only one such Trade and investment support institutions have a bearing
body – the National Certification Body for Non-destructive on the performance of the NQI function. An assessment of
Testing – which is accredited. Three CABs are accredited by trade and investment support institutions along three key
SLAB for systems certification. A complete list of accredited dimensions – coordination and influence, human capital
CABs can be found in appendix 2. and financial capacity, and influence on NQI development –
was completed through the consultative process in order
Inspection is mostly performed by State organizations but to identify areas of institutional upgrading required for suc-
their accreditation is weak. There is only one accredited in- cessful Strategy implementation. The assessment shown
spection body in Sri Lanka. None of the market surveillance in table 4 was conducted based on stakeholders’ evalua-
bodies perform accredited inspections. They neither use tion of trade and investment support institutions from the
external accredited inspection bodies nor are their internal perspective of how well they operate according to the three
inspection systems accredited. Without a central directive criteria mentioned.
[ A well-developed yet unfinished NQI for Sri Lanka ]14
Table 4 : Assessment of NQI institutions
Coordination Human and Influence
Description of trade and investment of financial on NQI
Name of institution support institutions in line with trade interventions capacity development
support functions High, medium High, medium High, medium
or low or low or low
SLSI ( under MoSTR ) National standards body of Sri Lanka, established High Medium High
under the Bureau of Ceylon Standards Act No. 38
of 1964. The SLSI Act No. 6 of 1984 established
SLSI. Its major role is standardization, although it
has been accumulating other functions.
MUSSD [ under the Ministry This is the NMI in Sri Lanka, established under the Low ( only legal Very low Low
of Industry and Commerce MUSSD Act No 35 of 1995. The role of MUSSD is metrology )
( MIC ) ] solely related to metrology.
SLAB ( under MoSTR ) SLAB is the national accreditation authority High Low High
for Sri Lanka, established under the Sri Lanka
Accreditation Board for Conformity Assessment
Act. No. 32 of 2005. SLAB’s role is solely related to
accreditation.
CAA ( under MIC ) CAA was created by the CAA Act No. 9 of 2003, High Low High
which also covers previous related Acts such as
the Consumer Protection Act No. 1 of 1979. The
role of CAA is to protect and safeguard the rights
of consumers and traders.
National Plant Quarantine NPQS is responsible for implementing the Plant High Low High
Service ( NQPS ) Protection Act No. 35 of 1999. The regulations
( under DoA / MoA ) under the Plant Protection Ordinance ( 1924 )
are still in operation to prevent introduction of
dangerous pests through import and to promote
healthy plants and plant products in export.
Animal Quarantine The Animal Diseases Act No. 59 of 1992 is High Medium High
Inspection Services ( under implemented by DAPH to ensure that diseases
the Department of Animal are not introduced into or by Sri Lanka by way
Production and Health of import and export of livestock and livestock
( DAPH ) ) products.
Central Environment Authority The Central Environment Authority, established High Medium High
( under the Ministry of under the Environment Act No. 47 of 1980 as
Mahaweli Development and amended by Act No. 56 of 1988 and Act No. 53 of
Environment ) 2000, is responsible for implementing all national
environmental regulations.
Directorate of Environmental The Food Act No. 26 of 1980, as amended High Low High
and Occupational Health by the Food ( amendment ) Act No. 20 of the
( under MoHNIM ) 1991, regulates and controls the manufacture,
importation, sale and distribution of food. It is one
of the major actors in food safety.
National Institute of The National Institute of Occupational Safety and High Low High
Occupational Safety and Health is responsible for ensuring implementation
Health ( under the Ministry of of safety, health and welfare standards in the
Labour, Trade Union Relations workplace.
and Sabaragamuwa
Development )
Sir Lanka Export EDB was established under the Sri Lanka Export High Low ( for High
Development Board ( EDB – Development Act No. of 40 of 1979. It is the quality )
under MIC ) national export promotion agency and as such
( inter alia ) provides support to exporters by
providing access to trade information, including
information related to technical requirements for
exports as well as international standards.
[ NATIONAL QUALITY INFRASTRUCTURE STRATEGY OF SRI LANKA ]15
Coordination Human and Influence
Description of trade and investment of financial on NQI
Name of institution support institutions in line with trade interventions capacity development
support functions High, medium High, medium High, medium
or low or low or low
CDA Under the CDA Act No. 46 of 1971, amendment to High Medium High
Act No. 40 of 1987 and the extraordinary Gazette
Notification No. 69 / 4 of 31 / 12 / 1978, the CDA has
been vested with power to provide governance,
guidelines and technology to the industry. The
CDA has an important role to play in relation
to varieties imported, as well as the quarantine
regulations related to the industry.
Department of Fisheries and The Fisheries Act No. 2 of 1996 declares related Medium Medium Very high
Aquatic Resources ( under fisheries management practices in line with
the Ministry of Fisheries regional and international conventions and
and Aquatic Resources regulations.
Development ( MoFARD ) ) The Fisheries Ordinance of 1940 enabled the
creation of the Fisheries Department to increase
production for both local and export markets. The
Department of Fisheries and Aquatic Resources
plays an important role in food safety measures
related to the fisheries industry.
National Aquaculture The National Aquaculture Development Authority High Low High
Development Authority ( under is governed by the National Aquaculture
MoFARD ) Development Authority Act No. 53 of 1998, and
formulates relevant regulations under its mandate
to manage aquaculture and inland fisheries to
ensure food safety and improve quality.
Department of Export The Department of Export Agriculture is High Low High
Agriculture ( under the Ministry responsible for research and development of a
of Primary Industries ( MoPI ) group of perennial export agriculture crops. It has
a major role in quarantine and import regulations.
IECD The Imports and Exports ( Control ) Act No. 1 of High Medium High
1969 provides for the control of the import and
export of goods to be implemented by IECD, and
thus quality assurance.
Sri Lanka Customs ( under the Sri Lanka Customs was established in 1806 and High High High
Ministry of Finance and Mass is governed by the Customs Ordinance, under
Media ) which regulations are enacted to enforce revenue
and facilitate trade. It has an obvious role in import
quality assurance.
Coordination among public and private stakeholders is dif- challenge is the first to be addressed by the present Strategy
ficult if you consider the high number of institutions cover- and has been already recommended by the NQP through
ing similar products. One illustrative example is food items, the setting up of an NQC. However, as mentioned, this pro-
where at least seven institutions cover similar aspects of cess has taken more time then foreseen.
the value chain. A food processor for the domestic market
or export would have to navigate between all these institu- The human capital and financial capacity of most organiza-
tions to ensure compliance with regulations, and thus lose tions need to be developed in order to meet new challeng-
on efficiency in a competitive international market. Further, es and advancing trends in the market. The NQI institutions,
a start-up facility will find this situation a legal impediment to apart from CABs, are State-owned and managed, which
function and survive. When looking at the list of institutions, means recruitment of human resources is time- and proce-
this situation is confirmed by an obvious lack of any coordi- dure-intensive. Remuneration is also less attractive at these
nation body or function among these institutions. In addition, institutions than in the private sector. The financial capacity
not all key NQI bodies report to the same ministries, which of the institution depends on the budgetary allocation by
misaligns planning and resourcing. The glaring coordination the Government of Sri Lanka ( GoSL ). Table 4 illustrates the
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